1. Modifying the env.mainnet.json File:

   • Explanation: Manually changing values in the env.mainnet.json file to settings that differ from other participants increases the likelihood of being penalized and not receiving rewards.

   • Recommendation: Stick to the default and approved settings to avoid penalties.
     

2. Reducing Transaction Intervals:

   • Explanation: Altering the CLI software to shorten the time between deposits might seem like it speeds things up, but it significantly reduces your rewards. The system penalizes any identifiable or suspicious transactions.

   • Recommendation: Use the CLI as intended to avoid detection and penalties.
     

3. Non-Randomized Deposits:

   • Explanation: Deposits that follow easily identifiable patterns, such as predictable intervals or amounts, can lead to your rewards being slashed.

   • Recommendation: Always randomize your deposit intervals and amounts to maintain anonymity.
     

4. Linking Deposit and Withdrawal Addresses:

   • Explanation: Sending ETH back from the withdrawal address to the deposit address can result in a reduction of your rewards. Additionally, if more than 30% of the amount already deposited is deposited again into the same deposit address, this may lead to penalties.

   • Recommendation: Avoid any direct association between your deposit and withdrawal addresses. Use new addresses whenever possible.
     

5. Direct Use of Centralized Exchanges (CEXs):

   • Explanation: Sending privacy ETH directly to an exchange creates a traceable link, resulting in two-thirds of your reward being slashed. Using centralized exchanges for direct deposits or re-deposits makes your transactions easy to trace and leads to penalties.

   • Recommendation: Avoid using centralized exchanges for depositing or withdrawing privacy ETH.
     

6. Large Deposits:

   • Explanation: Depositing large amounts of ETH makes it easier for nodes to associate your deposits and withdrawals, resulting in smaller rewards. A single large deposit only earns you 3.33% of the total possible reward.

   • Recommendation: Split your funds into smaller deposits. Making multiple smaller deposits can earn you up to 300 times the reward of a single large deposit, maximizing your earnings and enhancing your privacy.
     

7. Re-Depositing with the Same Withdrawal Key:

   • Explanation: Reusing the same withdrawal key when depositing funds again makes your transactions easily identifiable, leading to penalties.

   • Recommendation: Always use a new withdrawal key when depositing funds to earn new rewards.
     

8. Repeated Withdraw/Deposit Cycles:

   • Explanation: Circulating funds by withdrawing and immediately re-depositing them will be detected by the network and result in slashing. This behavior reduces your privacy and triggers penalties.

   • Recommendation: Avoid immediate re-deposits after withdrawals. Allow time and use different strategies to obfuscate transaction links.
     

9. Using Marked Addresses:

   • Explanation: Deposits from highly marked addresses (those flagged by the system for suspicious behavior) may be rejected, and you could lose your rewards.

   • Recommendation: Ensure your addresses are not associated with suspicious activities. Use clean, unmarked addresses for deposits.
     
     

Note: "Non-randomized" refers to deposits made at constant intervals (e.g., every hour) or deposits made too quickly in a short period (e.g., multiple deposits within less than 10 minutes). Such patterns are easily detectable and can lead to penalties.